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Howick Local Economic Overview 2019

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20 MARCH 20 AUCKLAND ECONOMIC OVERVIEWS HOWICK ── LOCAL BOARD ECONOMIC OVERVIEW aucklandnz.com/business a 2 | Howick Local Economic Overview 2019 2 | Document Title – even page header Contents 1 Introduction 2 People and Households 3 Skills 4 Local Economy 5 Employment Zones 6 Development trends 7 Economic Development Opportunities 8 Glossary aucklandnz.com/business 3 3 | Document Title – even page header Introduction What is local economic development ATEED’s goal is to support the creation of quality jobs for all Aucklanders and while Auckland’s economy has grown in recent years, the benefits of that growth are not distributed evenly. Local economic development brings together a range of players to build up the economic capacity of a local area and improve its economic future and quality of life for individuals, families and communities. Auckland’s economic development Auckland has a diverse economy. While central Auckland is dominated by financial, insurance and other professional services, parts of south and west Auckland have strengths in a range of manufacturing industries. In other areas, tourism is a key driver and provides a lot of local employment while there are also areas that are primarily residential where residents commute to the city centre or one of the industrial precincts for employment. The Auckland region also has a significant primary sector in the large rural areas to the north and south of the region. The Auckland Growth Monitor1 and Auckland Index2 tell the story behind Auckland’s recent economic growth. While annual GDP growth of 4.3 per cent per year over the last five years is encouraging, we want our economy to be more heavily weighted towards industries that create better quality jobs and generate export earnings. To support this goal ATEED has a role in promoting the adoption of new technologies and innovation across the economy and at the same time attracting investment and supporting sectors such as screen, the visitor economy and international education that bring in revenues from overseas. Although there is still a need to attract and retain larger employers to the city, helping local economies to grow requires an enhanced focus on existing small businesses which make up 97 per cent of all Auckland businesses. Businesses can be supported by raising their capability, encouraging business networking, connecting them to talent and facilitating access to export markets. ATEED help provide access to a range of business support programmes for established businesses that are looking for help in order to grow. There is also a need to continue to support entrepreneurship and business start-ups, particularly in less prosperous parts of the region. In 2018 ATEED produced the Auckland Prosperity Index3, which highlighted how different parts of the region have felt the benefits of Auckland’s continued economic growth. This has shaped the approach we have been asked to take in the region, focusing on those activities and industry sectors that will have the greatest impact on increasing investment in quality jobs – particularly where Auckland’s south and west can benefit. 1 https://www.aucklandnz.com/business-and-investment/economy-and-sectors/auckland-growth-monitor 2 The Auckland Index can be found at aucklandnz.com/auckland-index 3 https://www.aucklandnz.com/business-and-investment/economy-and-sectors/market-news-and- trends/growing-prosperity-for-all-aucklanders aucklandnz.com aucklandnz.com 4 | Howick Local Economic Overview 2019 4 | Document Title – even page headerThe role of local boards At the local level ATEED works with local boards to support several areas of work: • Growing local businesses through a range of initiatives to support start-ups and small and medium sized enterprises across the region • Place based initiatives either working with Auckland’s regeneration agency Panuku Development Auckland in its ‘Transform and Unlock’ areas as well as with smaller locally driven place-based initiatives • Business environmental sustainability initiatives and the promotion of waste- minimisation and circular economy opportunities • Providing economic intelligence: enhancing the evidence base and advice provided by ATEED at a local level. To provide a better understanding of the drivers of prosperity in a local area. While also providing the justification for the projects and initiatives delivered by the team. Local boards have a mandate to advocate for and fund a range of activities on behalf of their local communities. The local boards of Auckland Council want thriving town centres and access to employment opportunities in their communities and when opportunities lie elsewhere, transport solutions so residents can easily access those opportunities. Local boards are in a unique position to understand their local economy, work with the local business community and advocate or catalyse activities for local economic development. Through their advocacy role as well as through their empowering communities and locally driven initiatives budgets local boards can play a role in a range of ways. They can support: • ‘Places’ by supporting the town centres and business associations that provide much of their local employment or working with Panuku Development Auckland and ATEED to regenerate their town centres and attract investment and jobs • ‘People’ through support for community organisations that work with people distant from the labour market, they can support skills development for young people through a range of programmes like the Young Enterprise Scheme • The business community programmes like the PopUp Business School that fill gaps where mainstream services don’t meet community need • The sustainability of their local economies by helping promote business environmental sustainability and waste minimisation. What is the Howick local economic development overview? This economic development overview of the Howick Local Board area looks at: • a range of indicators on Howick’s economy • the drivers, trends and linkages that influence the local economy • major private and public initiatives that will impact on the economy in Howick • opportunities and issues to growing business and jobs in Howick The economic development overview can be the first stage in guiding local boards as to what the key issues are in their area and where the local board should focus its efforts when considering the outcomes it would like to include in the 2020 Local Board Plan. Howick Local Board Economic Overview 2019 Summary Howick is a prosperous local board area with employment in occupations such as wholesale trade, professional, scientific & technical services and education and these main employment sectors provide high quality employment opportunities. Unemployment Population growth rate at June 2019 Population growth is similar to the regional average over the 2013-2018 Census period. The area has a diverse population with sizeable Chinese and NZ European commuities. 3.8% Howick Unemployment rate 4.3% Unemployment has been similar to the regional average over the last 5 years. Auckland Growing industries Greater East Tāmaki and Highbrook are significant employment locations. The area has Jobs in Knowledge Intensive Industries a good level of skilled local job opportunities in growth sectors such as manufacturing and wholesale trade while rental, hiring & real estate services also provide many local 26.0% employment opportunities. Howick Significant employers Wholesale trade, professional services and educaion are the main employment sectors. 39.0% Accomodation & food, administrative services and machinery are also significant employers. Auckland Together these six sectors provide about 45% of local employment. Education attainment School leavers Educational attainment is high, a much higher proportion of school leavers enter degree level attaining NCEA level 3 (2018) study upon leaving soon. 69.5% Residential developments The Unitary Plan, along with the Auckland Plan, provides the policy framework by which Howick development is enabled and assessed. The area is likely to see significant developments with several development areas identified in the Auckland Plan. 62.7% Auckland LOCAL BOARD ASPIRATIONS In its current Local Board Plan the Howick Local Board seeks to ensure that Howick develops a prosperous local economy that attracts new businesses and tourists to the area. The local board wish to see more training and skills opportunities to assist its young people transition into employment. KEY OPPORTUNITIES Promote Howick’s key industrial and commercial areas as a good location for knowledge intensive companies to do business, increasing the level of skilled local employment opportunities. Support East Auckland Tourism to increase the number of visitors to Howick. KEY CHALLENGES Improving transport access to employment opportunities and to ease the movement of freight to and from the key employment zone of East Tamaki will help retain and attract employers. Attracting quality businesses to increase the availability of local highly skilled job opportunities. aucklandnz.com 6 | Howick Local Economic Overview 2019 6 | Document Title – even page header People and Households Howick is Auckland’s most populous local board area with a population of 140,970 that is forecast to increase to 194,500 by 2038. The area has an ethnically diverse population with significant Chinese and Indian populations. The Auckland Prosperity Index shows Howick residents have high skills and incomes, resulting in prosperous households. However,
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